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Sunday, 0 August 2006

Building Your Credit Correctly Without Going Broke
Posted at Sunday, 0 August 2006, 12: AM, Categorised as Debt Consolidation

When trying to make the most of your credit, it is important to have a low cost credit card. This will aid you in building your credit without going broke. Many credit card companies charge fees for the privilege of owning a credit card. Those fees can be eliminated at the discretion of the credit card company. You can start to remove those fees by asking the card issuer for no yearly fee and for an introductory rate. The yearly fee is sometimes waived to lure the card holder to use the card more often. Better than the yearly fee being waived would be an offer of an introductory rate. For instance an introductory rate may be offered at 6.5% interest for 6 months. The credit card issuer uses that limited time offer and low interest rate to keep you using the card and to keep the balance high. The credit card issuer hopes that the card holder will use more credit because of the lower interest rate. Many times the card holder will also move around balances from other credit cards which also allows the card issuer to make more money from interest.

The best way to eliminate the interest associated with your balance is to continuously ask for an introductory rate. These special rates usually expire every 6 months. So just before it expires you can ask for an extension. When you achieve lower interest rates you can pay off the credit card balance much quicker. I have used this principle numerous times. I have even called 17 times in over a few week period asking for an introductory rate, only to be told

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